Abstract Despite the considerable research franchise, incorporating elements of brand valuation is still insufficient. The franchise businesses stimulate economic development in emerging countries like Mexico. This paper attempts to analyze the signal value of the Mexican franchise brands in the growth of those who have been operating in Mexico during 2002-2008. Methodology was used panel data with 911 firms operating in the Mexican franchisor system. The results reflect an effect of endogeneity and negative growth in the sector. The franchise decision took into account the economic situation and size among other factors that confirm the theoretical arguments.